P3-1A On April 1 Flint Hills Travel Agency Inc. was established. These transactions were completed during the month
• 1. Stockholders invested $25,000 cash in the company in exchange for common stock.
• 2. Paid $900 cash for April office rent.
• 3. Purchased office equipment for $2,800 cash.
• 4. Purchased $200 of advertising in the Chicago Tribune, on account.
• 5. Paid $500 cash for office supplies.
• 6. Earned $10,000 for services provided: Cash of $1,000 is received from customers, and the balance of $9,000 is billed to customers on account.
• 7. Paid $400 cash dividends.
• 8. Paid Chicago Tribune amount due in transaction (4).
• 9. Paid employees’ salaries $1,200.
• 10. Received $9,000 in cash from customers billed previously in transaction (6).
Check: (a) Cash $29,000; Ret. Earnings $ 7,300
• (a) Prepare a tabular analysis of the transactions using these column headings: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, and Retained Earnings (with separate columns for Revenues, Expenses, and Dividends). Include margin explanations for any changes in Retained Earnings.
• (b) From an analysis of the Retained Earnings columns, compute the net income or net loss for April.
Click here for the solution: On April 1 Flint Hills Travel Agency Inc. was established
